Week 3: Digital Currency

What is the defining feature of digital currency

• It is only available in physical form

• It exists only electronically and has no physical form

• It is managed by government institutions

• It cannot be used for online transactions

How can digital currency be used?

• It can only be used for physical goods

• It can be used like fiat currency to buy goods and services or transferred between accounts.
  

• It is only used by banks to move money between them.
  

• It is used exclusively for trading stocks.

What is the key issue with the central banking system when it comes to digital currency?

• Inflation control
  

• Confidentiality and security of transactions
  

• Lack of physical cash reserves
  

• Transaction speed

What technology does cryptocurrency use o track transactions?

• Database Systems

• Password Protection

• Cryptography

• Financial institutions

Which system does tradition digital currency rely on?

• Blockchain network

• Central Banking System

• Peer-to-Peer network

• Decentralised computers

Cryptocurrency transactions are publicly available and cannot be tracked.

• True

• False

Cryptography does not involve encryption and decryption for securing information.

• True

• False

Cryptocurrency uses a decentralized network to manage transactions.

• True

• False